According to the Bureau of Labor Statistics, the Consumer Price Index (CPI), which measures inflation in the United States on an annual basis, fell to 3.0% in June from a rate of 4.0% in may. The expected decline was 3.1%. Bitcoin ( BTC), which had been stuck between $30,000-$31,000 for most of the last few days, rose modestly, to $30,900, in the immediate wake of the report. However, it then fell back to just below $30,800.

The core CPI (which excludes volatile food and fuel costs) fell from 5.3% to 4.8%, versus forecasts of 5.0%. The monthly core CPI in June was 0.2%, compared with 0.4% in May, and forecasts of 0.3%.

The report released today shows that headline inflation continues to fall, with the 3% in June down from a high of 9.1% reached in 2022. The Federal Reserve’s policymakers may find it more important that the core rate of the inflation has finally begun to move – from 5.3% to 4.8% – after stubbornly staying above 5% in this year. This 4.8% increase in inflation year-over-year was the lowest since October 2021.

The Fed and markets (if recent speeches are to be believed), continue to expect another rate hike at the FOMC’s meeting later this month. CME’s FedWatch shows that the FOMC is likely to raise rates during its meeting on July 25-26.

Bitcoin is barely moving on the inflation news. However, traditional markets have moved. The U.S. Treasury yield on 10-year notes has dropped 6 basis points, to 3.91%, and the yield on 2-year notes has fallen 14 basis points, to 4.73%. The dollar index is down 0.5%, and stock index futures point to a gain of nearly 1% at the opening.